Saturday, June 23, 2012

eLangdell is offering free Bankruptcy and Securities Law statutory supplement e-books for law school courses; call for textbook proposals

Just finishing up today at the CALI Conference in lovely San Diego at the Thomas Jefferson School of Law. The new building is super nice if you've not seen it!

The cost of books for our law students is immense. In case you have not already heard about this from other
sources:

CALI publishes free, open books for legal education in
electronic and print formats through eLangdell® Press http://elangdell.cali.org/ These e-books are viewable on
computers, iPad, iPhone, Nook, and Kindle, or a student can order at cost a hard
copy printed and mailed from Lulu.

CALI has partnered with Cornell’s LII to produce free, open
statutory e-book supplements for Bankruptcy and Securities law courses:

eLangdell is also publishing open access textbooks
distributed under a Creative Commons license, although there are none yet in the
Commercial Law field (yet, of course). There are statutory supplements for subjects (evidence, civil
procedure, bankruptcy, etc). If you are looking for a Contracts text for Fall, J.H. Verkerke, University of Virginia, has a new eLangdell book out for Fall 2012 adoption. If you would like to preview it, contact me at jmartin@stu.edu or Deb Quentel of CALI at dquentel@cali.org.

Wednesday, June 13, 2012

Sure, home
prices pretty much everywhere have dropped from 35% to 55% or more since the housing bubble burst. (See, Morgan Brennan, Home Prices Are Stabilizing, Signifying A Housing Market Bottom).
Some reports suggest that home prices may be stabilizing and may even start to recover. Id. That is supposedly there is a bottom to the real estate market. “Different markets
will bottom and recover at different paces depending on a variety of factors
this year, including the availability of local jobs and how fast foreclosures
can be processed and reabsorbed into local markets.”Id.
The ten hardest hit states are (as of March 2012):

What about those worst hit real estate market states? Do limits on lender recourse prime a market for greater risk-taking by home buyers? Perhaps not. A good study on the comparison of state laws on recourse by lenders was done by James Orlando,OLR Research Report: Comparison of State Laws on Mortgage Deficiencies and Redemption Periods (Revised 12/9/11). My quick read suggests that the top ten states hardest hit have mixed regulations when it comes to recourse or non-recourse mortgages. So, perhaps a hard hit real estate market is just that. The non-recourse will surely help borrowers who need to default (somewhat of a mini-bailout of sorts). Perhaps the strategic defaulters get a bit of a headwind in these states. There doesn't seem to be enough data to suggest, though, that the availability of a non-recourse loan was a substantial factor in the decline of the markets in the hardest hit states.

My suspicion is that most home loan defaulters don't have the assets available to lenders who would pursue a deficiency judgment even if they could under state law. If defaults are higher in non-recourse states, though, it would seem that either: (i) those in difficulty find it easier to let go where there is no recourse; or (ii) those who can pay act more opportunistically in a way that increases the number of defaults. Even without recourse, the homeowner who opportunistically walks away from the mortgage does not get a complete free pass due to the impact on their credit report. And, as Brent White (University of Arizona) has argued, the shame and guilt of walking away is often enough to deter many homeowners. See, Underwater and Not Walking Away. So, perhaps the local law doesn't have much impact after all.